The US economy has been going through a rough patch for the last couple of years. Texas is the 2nd largest state in the country, and though the Lone Star State’s oil-driven economy may seem stable, Texans — like any other US residents — have their fair share of economic woes to deal with. Texas has some of the highest home ownership rates in the United States, which is why the state’s home owners has been hit the hardest by this economic crisis.
Houston residents — the state’s largest city — have been the most affected. Therefore, if you are a Houston resident whose house is in foreclosure, you are not alone. Though foreclosure can be one of the biggest nightmares in a person’s life, it doesn’t mean the end. There are a couple of options to consider, some of which might actually get you from under the troubles of that burdensome house of yours. We are talking about selling your house while in foreclosure. Yea, it’s possible, though not exactly straightforward.
What Does Home Foreclosure Mean?
Before we get dive into the process of selling your foreclosure house in Houston, it’s important to fully understand what people mean when they say that their home is in foreclosure. A foreclosure is a home that is under the ownership of a bank, but once belonged to a homeowner. A homeowner has to voluntarily deed his/her home to the bank or abandon mortgage payment for a home to be foreclosed.
You will often hear people say that the bank took back the house under its ownership, which is inaccurate since the bank never owned the house in the first place. The bank can’t repossess what it never possessed, it simply forecloses on the mortgage and seizes the house.
How to Sell Your Houston House in Foreclosure
One of the most important things to remember is that the bank carries your mortgage and will do its best to protect its bottom line. Therefore, your house getting auctioned or abandoned is not good news for the bank. It’s within the bank’s best interests to help you sell the house and avoid foreclosure — that’s when the bank stands to make the most amount of money. But selling your house in foreclosure is a delicate process, you need to be careful.
To facilitate the process, maintain an open line of communication with the bank. Show the bank the steps that you are taking to get the property sold and update them whenever there are any developments. Call with advance notice if anything will be late, you don’t want to miss deadlines. If there are any problems, explain yourself clearly and demonstrate your willingness to come up with a solution. Don’t be overly dramatic, bankers are people too.
With enough effort, you may be able to dramatically slow down the foreclosure process and buy yourself sometime to sell the house. Alternatives such as bankruptcy, personal modification and short sale are worth considering. The failure or success of these alternatives will depend on the circumstances surrounding your foreclosure.